September 23, 2019 / 1:38 PM / 2 months ago

CANADA FX DEBT-Loonie recovers after surprise jump in wholesale trade

    * Canadian dollar trades near flat against the greenback
    * Canadian wholesale trade increases by 1.7% in July 
    * Price of U.S. oil gains 0.3%
    * Canada's 10-year yield touches a near 2-week low at 1.339%

    By Fergal Smith
    TORONTO, Sept 23 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday, with the
currency clawing back its earlier decline after domestic data
showed an unexpected jump in July wholesale trade.
    Canadian wholesale trade increased by 1.7% in July from June
on stronger sales in the personal and household goods subsector,
as well as motor vehicles and parts, Statistics Canada said.
Analysts had forecast a 0.1% decrease.
    The data, which included a 1.9% rise in sales volumes, "will
provide a much needed lift to what otherwise looks like a
lacklustre GDP print for July," Avery Shenfeld, chief economist
at CIBC Capital Markets, said in a note.
    Speculators have raised their bullish bets on the Canadian
dollar to the highest in six weeks, data from the U.S. Commodity
Futures Trading Commission and Reuters calculations showed on
Friday. As of Sept. 17, net long positions had increased to
19,823 contracts from 11,523 in the prior week.             
    At 9:08 a.m. (1308 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3263 to the greenback, or 75.40
U.S. cents. The currency, which rose 0.2% last week, traded in a
range of 1.3252 to 1.3305.
    The U.S. dollar        rose against a basket of major
currencies after weaker-than-expected German flash purchasing
managers' index survey data pressured the euro.             
    Signs of European economic weakness and the prospect of a
faster-than-expected full restoration of Saudi oil output
weighed on the price of oil, one of Canada's major exports.
Still, U.S. crude oil futures        reversed an earlier
decline, rising 0.3% to $58.24 a barrel             
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries and German Bunds.
The two-year            rose 4.5 Canadian cents to yield 1.549%
and the 10-year             was up 28 Canadian cents to yield
1.357%.
    The 10-year yield touched its lowest intraday level since
Sept. 10 at 1.339%.

 (Reporting by Fergal Smith
Editing by Chizu Nomiyama)
  
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